What Are Your Options If a Creditor Attempts to Collect on a Debt That Has Been Discharged?
If you successfully make it through the Chapter 7 bankruptcy process, the bankruptcy court will issue an order discharging certain debts in exchange for the sale of some of your property. A discharge means that you no longer have any legal obligation to … [Read more...]

Here's something that may surprise you if you're trying to get a creditor to forgive or discharge a debt that you owe them, particularly if it's a mortgage lender or a company that has extended you some form of credit—if the debt is discharged, you may be required to claim the amount forgiven as income on your next personal tax return! But wait a … [Read more...]

Running your own business can often be a precarious venture. If your business is experiencing serious financial challenges, you need to realistically assess whether it has the potential to succeed. Whether you want to try to salvage the business or just shut it down, a Chapter 7 (liquidation) bankruptcy filing may be helpful. First, though, you … [Read more...]

Texas is one of the few states in the country that generally don't allow the garnishment of wages for collection of consumer debts. But there are major exceptions where garnishments CAN occur, including:
child support and alimony
federal taxes
student loans
if your employer is out of state
a judgment against you was entered in another … [Read more...]

The bankruptcy power called the "automatic stay"immediately stops a home foreclosurethe moment your bankruptcy is filed. What happens after that depends on whether you file a Chapter 7 or Chapter 13 case, and on what you want to accomplish.
Buy Some Time with Chapter 7
A Chapter 7 "straight bankruptcy" cancels an immediately pending foreclosure … [Read more...]

In the absolutely simplest Chapter 13 case you pay a monthly amount each month based on what you can afford and it's divided prorata among your unsecured debts. So, say, you pay $300 for 36 months, and all of your debts are paid 20% of what you owe, and at the end of the case all the remaining debts are discharged—written off.
But Chapter 13 … [Read more...]

In the simplest version of a Chapter 7 case:
you easily pass the "means test" based on your income
all your assets are protected by "exemptions"
you either have no debts with collateral or else are current on these debts, and
all your debts get discharged (legally written off).
But what if your case isn't so straightforward?
If Your … [Read more...]

Letting a creditor get a judgment against you is dangerous, for a lot of reasons. One of the biggest dangers is a judgment lien on your home. You can often prevent them from hitting the title to your home, and can really help yourself if you do.
Creditor Judgments Happen All Too Easily
It's very easy to get a judgment against you.
If you … [Read more...]

The main goal of most bankruptcies is the discharge—the legal write-off of debts. If you are considering filing bankruptcy to get a fresh financial start through a discharge of your debts, you probably don't want to hear a bill collector telling you that you won't be able to discharge that debt.
So what is the truth about prior threats to … [Read more...]

The goal of most bankruptcies is the discharge — the legal write-off of debts. If you are considering filing for bankruptcy to get a fresh financial start through a discharge of your debts, a collection agent telling you that you won’t be able to discharge that debt may well be troubling. So what is the truth about such threats?
Idle … [Read more...]